Since May 1, 2025, it is more costly to withdraw money using the Indian ATM. Reserve Bank of India (RBI) has revised upwards the ATM transaction fee to Rs 23 per transaction as against the previous figure of Rs 21. This little addition can be costly to the wallet of the average citizen, especially to those who visit ATM frequently. It is time to learn more about these diverse facets of this change and learn how it will influence your financial life.
New Fee Structure
RBI has permitted the banks to put a charge up to 23 rupees over the limit of monthly free transaction. This charge is applicable on cash and non-financial transacting including balance enquiry. This has already been adopted by some banks, among them are big banks such as HDFC and ICICI.
When There Is No Fee
Metro Cities: Most banks will provide 3 free ATM transactions for the metros cities where as in non-metro cities, 5 free transactions will be provided. More than this, each transaction will be charged a fee of Rs 23. This levy will also occur on other banks ATM machines, which is referred to as interchange fee.
Raised Interchange Fee
RBI has also imposed a greater interchange fee that is levied on ATM banking transactions across bank. This levy amount is now increased to Rs 19 per withdrawal of cash and Rs 7 in case of non-financial transactions. This will provide extra revenues to the banks, though on the customers the charges will be heavier.
Encouraging Payment Online
The increment in this fee is termed as one of the measures to be furthering digital payments. Scholars claim that individuals can switch to using the services of UPI and digital wallets because of the rise in the price of completing purchases in cash. But this change is likely to be difficult among the people in rural areas where payments in terms of the digital payment method are less famous.
Response Of Banks
HDFC bank announced that transaction that exceed the free limit will have a fee of Rs 23 as it will be effective on May 1, 2025. Such a policy has been embraced by ICICI Bank as well. Even some banks such as own have also affirmed to effect such a change. The customers are encouraged to visit the policies of their bank.
Money Saving Sure Ways
The customers can like to pay by digital payments to avoid the charges in the ATM. Other than this, one can also save cost by using the ATM of your bank and monitoring the limit of free transactions in a month. It is also a good solution to use the mobile banking app instead of checking the balance on a regular basis.
Effect On The Future
This price increment might not be big, but to customers who use ATM regularly, the cost can be augmented yearly. The change can influence the financial planning especially among the lower and middle classes. It is the time we all should go towards digital transactions.
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